The Gross Domestic Product (GDP) for the second quarter of 2018 was estimated at €3 billion, an increase of €238.0 million or 8.6 per cent when compared to the corresponding period last year, the National Statistics Office said on Thursday.
In real terms, GDP went up by 5.9 per cent.
During the second quarter of 2018, GDP growth was mainly attributable to domestic demand.
Total final consumption expenditure increased by 9.7 per cent in nominal terms and 8.2 per cent in real terms.
This was the result of an increase in household expenditure of 7.6 per cent in nominal terms and 7.1 per cent in real terms, and an increase in government expenditure of 15.9 per cent and 11.5 per cent in real terms. This was further compounded by an increase in gross fixed capital formation of 16.4 per cent in nominal terms and 12.2 per cent in real terms.
Exports of goods and services increased by 3.1 per cent in nominal terms and registered a slight drop in real terms. Imports of goods and services increased by 7.4 per cent in nominal terms and by 4.6 per cent in real terms.
Compared to the second quarter of 2017, GDP at current prices went up by €238.0 million, and is estimated to have been distributed into an €89.3 million increase in compensation of employees, a €106.9 million increase in gross operating surplus of enterprises and a €41.9 million increase in net taxation on production and imports.
In a statement, the government noted that Malta’s economic growth was three times the EU average.
It said that the economy had grown by an average of 5.4% over the first six months of the year.
This was due to an increase in private consumption, which came as a result of increased income.
In fact, during the first half of the year, salary income increased by €184 million (8%), the government said. Private consumption had increased by 6%.
Businesses were also doing well, having registered an increase in profits of €182 million in Q2 of this year, when compared to the same quarter last year.
The data also shows that the country’s dependency on government expenditure had been further reduced.
The financial sector, which according to the Opposition is going through uncertain times, had registered an operational increase of €31 million. The gaming sector grew by €70 million.